OREANDA-NEWS. April 11, 2011. Automotive Components Division of GAZ Group and Bulten, Swedish manufacturer of fasteners – one of the companies of the international industrial group FinnvedenBulten – have signed a letter of intent to establish a joint venture at the facilities of Gorky Automobile Plant. The new joint venture will become the first FinnvedenBulten’s production site in Russia, reported the press-centre of GAZ Group.

According to the signed letter of intent, production of fasteners can be established at Gorky Automobile Plant’s facilities. The parties are planning to determine the parameters of the joint project until the end of 2011. The start of production is planned for 2012. The joint venture will develop and manufacture fasteners for the automotive industry of Russia and the CIS, and for customers from other industries. In particular, it is planned to supply the products of the JV to foreign automakers which are localizing their production in Russia.

In the framework of the project, Gorky Automobile Plant, which manufactures fasteners for Russian customers, will provide the existing production and distribution infrastructure. Bulten, which supplies fasteners to global automakers and which is interested in expanding its business in Russia, will provide to GAZ its own developments of new products and technologies of their manufacture.

Tommy Andersson, CEO of Bulten: “As one of the world’s foremost suppliers of fasteners, Bulten estimates the potential of the Russian market to be significant. High import duties in Russia and high demand for quality products create great opportunities of efficient development for local manufacturers. The experience and competences of GAZ will help us to significantly improve the efficiency of the future high-quality fasteners production for Russian automotive companies”.

Bo Andersson, President of GAZ Group: “In the framework of cooperation with Bulten, the working equipment of Gorky Automobile Plant used in fasteners manufacture will be significantly upgraded. Creation of high-tech components production at GAZ aimed at a wide range of customers is provided for by the development strategy of the Automotive Components Division. Implementing this strategy, in 2010 the Division increased supplies to external customers by 70% in comparison with 2009; these include automakers, transportation companies, companies of aviation and other industries”.

For reference:
FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions – Finnveden Metal Structures and Bulten – both with strong positions in their respective customer segments. The Group had net sales of SEK 2.6 billion in 2010.

Bulten is a leading business partner and supplier of fasteners to the international automotive industry.  The division has four production sites and seven logistics and sales centres in Europe, US and Asia. Bulten has its own R&D centres, advanced production technology and processes conforming to international quality and environmental standards. The division closely cooperates with automotive industry, developing customer specific solutions for every client.